Lagos, Nigeria — August 10, 2025
Nigeria’s automotive sector currently accounts for just 0.04% of the nation’s Gross Domestic Product (GDP), according to data from the Nigerian Automotive Industry Development Plan and government statements. This is a steep contrast to its more vibrant period in the 1960s and 1970s, when strong government backing and active assembly plants positioned the industry as a growing contributor to the economy.
Former Minister of Trade, Industry and Investment, Doris Uzoka-Anite, has described the industry’s potential as significant, citing projections that it could contribute up to 25% of GDP. However, the 25% figure remains an aspirational target and is not supported by a publicly available economic model detailing the timeframe, investment scale, or industrial capacity needed to achieve it.
Analysts note that the sector’s decline began in the 1980s following economic liberalisation and reduced state involvement, leading to a collapse in local vehicle production and increased dependence on imports — with used-car imports valued at billions of dollars annually. Reviving the industry, experts say, would require long-term investment, development of local parts manufacturing, stable policy frameworks, and improved infrastructure to compete with imports.
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